Finding 1165699 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-12-19
Audit: 376427
Organization: Eldred Borough (NY)

AI Summary

  • Core Issue: The Borough failed to submit the Single Audit Report on time, breaching federal requirements.
  • Impacted Requirements: This delay violates the Uniform Guidance, risking federal funding and potential penalties.
  • Recommended Follow-Up: Implement a monitoring system for audit deadlines and ensure clear responsibilities are assigned to avoid future delays.

Finding Text

Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.

Corrective Action Plan

Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.

Categories

Procurement, Suspension & Debarment Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1165692 2023-003
    Material Weakness Repeat
  • 1165693 2023-003
    Material Weakness Repeat
  • 1165694 2023-003
    Material Weakness Repeat
  • 1165695 2023-003
    Material Weakness Repeat
  • 1165696 2023-004
    Material Weakness Repeat
  • 1165697 2023-004
    Material Weakness Repeat
  • 1165698 2023-004
    Material Weakness Repeat
  • 1165700 2023-005
    Material Weakness Repeat
  • 1165701 2023-005
    Material Weakness Repeat
  • 1165702 2023-005
    Material Weakness Repeat
  • 1165703 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 Capitalization Grants for Clean Water State Revolving Funds - Wastewater Treatment Plant Upgrades $1.17M
66.458 Capitalization Grants for Clean Water State Revolving Funds - Wastewater Treatment Plant Upgrades Architect and Engineering $103,727
66.458 Capitalization Grants for Clean Water State Revolving Funds - Sanitary Sewer Replacement Architect and Engineering $43,391
21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds $38,637